Main Idea
This article explains a business model where a cheap product leads to later sales of expensive extras.
the razor-and-blades model
The company that invented the disposable razor blade.
King C. Gillette?
The disposable item King C. Gillette invented.
razor blade
The man who invented the disposable razor blade.
King C. Gillette
A business strategy where a cheap item leads to ongoing sales of expensive add-ons.
razor-and-blades model
The article says one company uses a similar strategy with game consoles.
Sony
The company mentioned as making money from ink cartridges.
printer manufacturer
The product many people buy that can cost almost as much as the printer itself.
replacement cartridges
The author of the book quoted at the beginning of the article.
H. G. Wells
A pricing system with two connected parts, like a cheap machine and expensive supplies.
two-part pricing
This strategy works by making money from the things people need to keep buying after the first purchase.
refills / replacements / consumables?
The company that may lose money selling game consoles but gains profit later.
Sony
The machine that is cheap compared to the things needed to use it.
printer
The person who wrote about a future of “extravagance, poverty, and crime.”
H. G. Wells
Items that have to be bought again and again, such as ink or blades.
consumables
The article compares different examples of the same pricing idea, including printers, razors, games, and coffee.
razor-and-blades-style products
The company mentioned as making money from coffee pods, not the machine.
Nestlé
The gaming device mentioned in the article.
PlayStation 4
The inventor described as having a business idea a year later
King C. Gillette
A product offered cheaply at first to attract buyers.
loss leader
The article argues that this model is successful because the first item is often cheap, but the follow-up items are where the profit comes from.
two-part pricing
The fictional company in the book that would control all necessities like food, clothing, and habitation.
United Company
The product Nestlé profits from, not the coffee machine itself.
coffee pods
The article’s example of someone who created a product that people must keep replacing.
King C. Gillette
The act of making money from the item people must keep repurchasing.
profit from consumables